Bank Negara: Joint enforcement action against illegal financial schemes

KUALA LUMPUR: Bank Negara Malaysia takes illegal financial schemes very seriously and will not hesitate to enforce the law against the perpetrators and promoters of such schemes.

In a statement Thursday, the central bank said the wrongdoers would face the full brunt of the law, including laws administered by Bank Negara, the Penal Code, the Interest Schemes Act 2016, the Direct Sales and Anti-Pyramid Scheme Act 1993 as well as the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Under the law, action can also be taken against investors who knowingly promote and participate in the illegal schemes.

To this end, a joint enforcement action on any financial fraud and scams will be pursued by an inter-agency initiative led by the Attorney General Chambers under the National Coordination Committee to Counter Money Laundering.

Bank Negara cautions members of the public not to participate in schemes that promise unrealistically high returns, interest rates or profits.

“Members of the public should ensure that they do not fall prey to these schemes by referring to Bank Negara’s financial consumer alert which lists companies that are neither authorised nor approved under the relevant laws and regulations administered by the central bank. It also provides information on the common features of illegal financial schemes,” Bank Negara said.

In addition, financial institutions (FIs) and money business service providers have been directed to heighten their vigilance in detecting the accounts which are used by the perpetrators of financial scams.

They have also been told to further enhance their customer due diligence (CDD) policies and processes in identifying suspicious transactions and fund flows between bank accounts so as to prevent FIs from becoming conduits that facilitate such illegal schemes.